著者

藤田 真哉

出版者

経済理論学会

雑誌

季刊経済理論

巻号頁・発行日

vol.41, no.2, pp.80-87, 2004

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The purpose of this paper is to explain how institutional adjustments in the labor market affect the macro-economic stability. We suppose that the institutional adjustments in the labor market consist of three factors: inelasticity of employment, money wage indexation to labor productivity, and money wage indexation to price level. In addition, we shall take into account also the relevance of reserve army effect to the macro-economic stability. In this paper, we adopt a Goodwin-type cycle model. This model, which has its origin in Goodwin (1967), has a characteristic feature in the respect that a business cycle is caused by factors in the labor market rather than those in the good market or in the money market. The model seems therefore to be appropriate for examining the relation between the macro-economic stability and adjustment patterns in the labor market. On the basis of this model, we construct the Goodwin-type model with alternative growth regimes: profit-led growth regime and wage-led growth regime. The former means that large profit share leads high growth, and the latter means that large wage share leads high growth. The difference between these two growth regimes has been analyzed by post-Keynesian economics. According to which growth regime we choose, the effects which institutional adjustments in the labor market have on the macro-economic stability are varied. Some of our results are as follows. First, under profit-led growth the macro-economic system with low elasticity of employment and with low money wage indexation to labor productivity is unstable, but not always so under wage-led growth. Second, either under profit-led growth or wage-led growth sufficiently large money wage indexation to price level destabilizes the macro-economic system. Third, controlling the reserve army effect makes the macro-economic system stable under wage-led growth, but unstable under profit-led growth.